Friday, July 10, 2020
US flag

IL Assembly overrides a student loan rights veto

The Illinois House voted 98-16 yesterday evening to override Gov Bruce Rauner’s veto of a student loan bill of rights introduced by Rep Will Guzzardi, a Chicago Democrat.

The new law in Illinois will impose some of the strictest regulations in the country on companies that service student loans, “ensuring that they provide borrowers the best possible terms for repaying their student loans.”

“The student loan crisis is a huge drain on our state’s economy and on the next generation of Illinoisans,” Mr Guzzardi said in a statement. “Today, we came together to make sure that millions of Illinoisans get the most favorable terms for paying those loans back.”

The Illinois Senate passed a resolution to override Mr Rauner’s veto about two weeks ago, and now that both chambers have done so, the bill will become law in the state.

Specifically, the new law places many requirements on loan servicing companies. For instance, they can’t count a payment as late if it was received at an address the company used within the last 90 days. They have to be upfront and honest about fees and payment schedules. They have to make sure borrowers understand what all their repayment options are, such as forbearance.

The new law, I hope, will make it easier for recent college graduates to repay their student loans without going into a state of financial ruin or messing up their credit score for life at the hands of deceptive or predatory lenders, servicing companies, or even colleges.

The loan servicing companies are a small piece of the puzzle for tackling the student loan crisis in America, but Illinois’s approach is a good start. And you have to start somewhere.

Paul Katula is the executive editor of the Voxitatis Research Foundation, which publishes this blog. For more information, see the About page.

Recent posts

Voxitatis congratulates the COVID Class of 2020

2020 is unique and, for high school graduates, different from anything they've seen. Proms, spring sports, & many graduation ceremonies are cancelled. Time for something new.

Vertical addition (m3.nbt.2) math practice

3rd grade, numbers and operations in base 10, 2, 3-digit vertical addition practice problem

Rubber ducks (m3.oa.1) math practice

3rd grade, operational and algebraic thinking, 1, rubber ducky modeling practice problem

Distance learning begins as Covid-19 thrives

What we learn during & from coronavirus, a challenging & imminent crisis, will provide insights into so many aspects of our lives.

Calif. h.s. choir sings with social distancing

Performances with the assistance of technology can spread inspiration across the globe even as the coronavirus spreads illness and disease.

Families plan to stay healthy during closures

Although schools are doing what they can to keep students learning and healthy during the coronavirus outbreak, that duty now shifts to parents.

Illinois temporarily closes all schools

IL schools will be closed on Tuesday, March 17, through at least March 30. Schools in 18 states are now closed due to coronavirus.

Coronavirus closures & cancellations

Many schools are closed and sports tournaments cancelled across America during what the president called a national emergency: coronavirus.

Coronavirus closes schools in Seattle

The coronavirus pandemic has caused colleges to cancel classes, and now Seattle Public Schools became the nation's first large district to cancel classes due to the virus.

Most detailed images ever of the sun

A new telescope at the National Solar Observatory snapped the most detailed pictures of the sun's surface we have ever seen.

Feds boost Bay funding

Restoration efforts in the Chesapeake Bay watershed received a boost in federal funding in the budget Congress passed last month.